Solvency Projection May be Misleading
Many reports recently have stated that the Social Security trust fund will run out by 2030. However, that does not mean that we are fine until then. In the past 3 years the Social Security has had to borrow $200 billion in order to back benefit checks. This is harrowing news to those that thought the problem would not take root for at least another decade. This problem stems from how the trust fund invests it’s money. It is true that the trust fund is currently at its highest point, but all of the money is held in treasury funds which are not paying out enough in interest to keep up with the payment of benefits. For more information visit this article by Allan Sloan with The Washington Post.
This posting is presented for informational purposes only and does not represent legal or financial guidance. Any opinions or interpretations presented are either those of the original author or, in the case of articles authored by the AMAC Foundation, are the opinions of AMAC Foundation staff, originally trained and accredited by the National Social Security Association (NSSA) and certified via the AMAC Foundation. Any links included in the article are valid on the posted date; socialsecurityreport.org cannot guarantee the duration of the links’ validity. NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (https://amacfoundation.org/services/) or email us at ssadvisor@amacfoundation.org. Because we are a non-profit organization, there is no charge for these services.